For all tax years with the exception of 2020:
Unemployment benefits are considered taxable income and should be reported on your tax return. If you received unemployment compensation, you should receive Form 1099-G with an amount in box 1 that reports the total amount you collected during the year.
For tax year 2020:
The first $10,200 of unemployment income can be excluded from your federal income. If married filing jointly and both spouses received unemployment, the amount increases to $20,400. The AGI must be less than $150,000 for both single and joint filers.